Economists have finally let the cat out of the bag; living within your means is harmful to the economy.
The new finding is a call to all people to throw caution to the wind and go out and buy that luxury watch or shoes because ‘the economy depends on it.’
While the findings are shocking, the writing was on the wall for a long time. Covid-19 had demonstrated that all economies needed people to be buying things they did not need with money they did not have in order to keep the economy going.
As soon as people started to buy only what was essential, the world economies started to collapse. This was the first casualty of the Covid-19 pandemic.
This is not an isolated occurrence, and what they will never tell you is that the economy can only be sustained by greed and poor financial decisions at a person level. This is the reason why economists would not want you to fall into the bandwagon of ‘live within your means.’
And if you live within your means, the money you save is the one that is used to fund the lifestyle of other people who have failed to live within their means. To be fair, there are a few people who borrow money for noble purposes such as investment, but these are a very small group. Majority of the people are inspired by the need to keep up with the Omolos and the Joneses of this country. It sounds irresponsible, but it is the pillar of economic growth.